Quarterly report pursuant to Section 13 or 15(d)

Consolidated Statement Of Cash Flows (Unaudited)

Consolidated Statement Of Cash Flows (Unaudited) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Cash flows from operating activities:
Net loss	$ (785,600)	$ 1,868,907	$ (2,667,714)	$ (2,102,462)	$ (5,445,187)
Adjustments to reconcile net loss to cash used in operating activities:
Derivative gain	(40,370)	(2,765,013)	(495,468)	(833,418)
Amortization of prepaid expenses			180,983
Stock based compensation	153,155	172,219	1,304,175	578,363
Stock based interest payment				52,500
Loss on sale of investments			7,185
Depreciation, depletion and amortization	59,711	29,009	146,602	77,625
Accretion - Asset retirement obligation	10,526	5,234	29,167	15,513
Amortization of debt discount			817,431	1,626,062
Changes in operating assets and liabilities
Accounts receivable			2,919	(11,947)
Accounts payable			(5,480)	(89,282)
Accrued expenses and other current liabilities			90,975	151,862
Amounts due to directors			121,755	197,280
Net cash used in operating activities			(467,470)	(337,904)
Cash flows from investing activities:
Purchase of oil and gas properties			(360,000)	(1,350,000)
Proceeds from sale of investments			101,191
Net cash used in investing activities			(258,809)	(1,350,000)
Cash flows from financing activities:
Proceeds from amount due to directors			5,350
Repayments of amount due to directors			(348,438)	(56,056)
Proceeds from sale of common stock			331,667	388,125
Common stock issuance costs				(37,500)
Proceeds from long term debt			3,288,650	2,021,875
Debt issuance costs			(216,000)
Repayment of long term debt			(1,785,333)	(570,500)
Net cash provided by financing activities			1,275,896	1,745,944
Net increase in cash			549,617	58,040
Cash, beginning of period			18,605	30,585	30,585
Cash, end of period	$ 568,222	$ 88,625	568,222	88,625	$ 18,605
Supplemental Cash Flow Information
Cash paid for: Interest			209,307	125,431
Cash paid for: Income taxes
Supplemental Disclosure of Non-Cash Investing and Financing Activities:
Conversion of convertible note payable				6,778
Issuance of shares for oil and gas property acquisitions				820,250
Issuance of warrants for 4,062,500 common shares as debt discount				416,315
Loan from director to pay convertible debt				100,000
Issuance of shares as deposit for oil and gas property acquisition				288,000
Prepayment of contract through amounts due directors			100,000
Long term debt paid through amounts due directors			104,904
Issuance of shares for contract services			700,920
Sale of shares through satisfaction of unrelated notes payable			127,215
Accrued expenses exchanged for long term debt			9,500
Increase in oil and gas properties due to asset retirement obligation			205,048
Issuance of shares and warrants as discount on debt			$ 684,411